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BofA Slaps Zynga With 'Neutral' Rating, Shares Slide

Shares of Zynga (ZNGA) slumped more than 5% on Wednesday as investors digested a downgrade to “neutral” by Bank of America Merrill Lynch (BAC).

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The bank reportedly cut its outlook on Zynga from “buy,” citing “less valuation upside” for the San Francisco-based “Farmville” maker following a 47% year-to-date gain, according to reports from niche media outlets.

The Charlotte, N.C.-based bank said the social game maker’s shares, which have risen recently amid states’ growing adoption of online poker, now reflect the long-term potential value of Zynga.

The downgrade comes nearly two months after BofA upgraded Zynga on Feb. 5 ahead of its fourth-quarter earnings report in which the operator of “Words with Friends” posted a surprise adjusted profit and widely trumped Wall Street expectations on the top line.